Energy Exchange

“Go Time” for Groundwater Testing In Wyoming

Everyone wins when states institute strong, science-based groundwater testing programs around oil and gas development areas. Landowners get important information about their water quality and protection from potential spills. Oil and gas companies get what is essentially an insurance policy tracking the quality of area drinking water sources both before and after drilling. And regulators get an important new source of data to help them understand local conditions and target clean up, if needed.

EDF has advocated for a program in Wyoming that aims to do exactly this – establish a groundwater quality baseline in areas where oil and gas development is planned, and then follow up with two sets of tests to monitor for potential impacts from this specific activity. And Wyoming regulators have proposed a program that would, on the whole, create a strong, scientifically valid groundwater testing program.

Late last week, Wyoming’s powerful paper of record, the Casper Star-Tribune, announced it agrees.

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Posted in Natural Gas, Wyoming / Comments are closed

New Study Launches In Series Evaluating Methane Across The Natural Gas System

Source: San Antonio Business Journal

This year is proving to be a big year for methane research.  We’ve seen a handful of new studies published, some funded by EDF and some not, as well as new projects announced.

The attention methane is getting by the scientific community is justified and overdue. Methane emissions are a central issue in the debate over the role that natural gas may play in our national energy future. From a climate perspective, methane is 72 times more powerful than carbon dioxide (CO2) on a per ounce basis when released into the atmosphere over the first 20 years.  And according to new projections by the Intergovernmental Panel on Climate Change (IPCC), methane is far more potent than we realized (as much as 84 to 87 times more potent than CO2 on a 20-year basis).

The oil and natural gas industry is the single largest source of manmade methane emissions in the United States. Despite this, little is known about how much methane is released from where across the natural gas supply chain. But, according to the Environmental Protection Agency’s latest estimates, we know enough to say that methane poses a serious problem to the climate. Read More »

Posted in Natural Gas / Comments are closed

History Repeats Itself Again: CARE’s New Cost Analysis Paints a One-Sided Picture

Major polluters funding skewed analysis of the costs and benefits of environmental regulations is a long-standing tradition in regulatory circles. In a recent version of this phenomenon, CARE (Californians for Affordable and Reliable Energy), an industry funded front group aimed at attacking clean energy and clean fuel policies in California, hired Navigant Consulting to do just that.

Last week, EDF economists pulled back the curtain on the recently released CARE report and found more of the same scare tactics: one-sided costs estimates yielding unfounded results and cherry-picked outcomes.

Unsurprisingly, our economists found that the CARE study “focused exclusively on the costs of California’s complementary clean energy and clean fuels policies while avoiding comparative assessment of the benefits.” Additionally, the study was found to “rely on sources that have not been peer reviewed, and misinterpret analyses and energy market trends.”

Due to the noted inaccuracies of the study, the memo makes the point that “policy makers should treat the Navigant study with extreme caution; it likely overstates costs while considering neither the benefits to be enjoyed nor the cost-minimizing aspects of policies carefully designed to deliver environmental benefits as efficiently and quickly as practicable.”

A CARE funded analysis that results in a one-sided finding shouldn’t come as a shock. The group is funded by some of the largest polluters and fossil fuels producers in California – those that have the most obligations to change under the state’s comprehensive clean energy and climate change laws. CARE members include the Western States Petroleum Association, the California Manufacturers & Technology Association and the California Chamber of Commerce, as reported on its website.

As California transitions to cleaner, more diversified sources of energy, many businesses will be faced with the stark choice of participating in the modernization of our energy and transportation system or fighting against progress and innovation. Whichever way those businesses trend, the recent CARE report prepared by Navigant shows that misinformation will continue to be a part of the portfolio approach used by polluters to undermine California’s progress.

For other analysis of industry reports that have overblown costs and underestimated benefits of California’s clean energy and clean fuels policies, read here, and here.

Posted in General / Comments are closed

Unique Partnership Creates New Energy Efficiency Loan Model For Rural Homeowners In North Carolina

Duke Energy is the largest utility in the United States, so of course it gets a lot of attention in its home state of North Carolina.  Yet millions of residents in rural parts of the state rely on electric cooperatives, not Duke Energy, to keep the lights on.  In fact, rural cooperatives serve all or part of the customers in 93 of 100 counties in North Carolina.

This is important because rural areas have just as much, if not more, need to increase energy efficiency.  Case in point: a seven-county area in eastern North Carolina served by Roanoke Electric Cooperative.  The cooperative has made great strides in promoting energy efficiency, yet there are still customers with utility bills that are higher than their mortgage payments some months.  Close to half of Roanoke Electric’s customers live in manufactured homes, which typically have less energy-saving insulation than standard homes.  And, in an economically-distressed region, few homeowners have extra money to pay for energy efficiency improvements, like caulking around windows or adding insulation.

Now, thanks to a new program offered by Roanoke Electric Cooperative, homeowners can secure low-cost loans from a private lender to make home improvements that will reduce energy use and save money.   The loan is paid back on the monthly utility bill, reducing paperwork for homeowners and making repayment easier.  In this program, the energy efficiency home loan is made by Generations Community Credit Union, a lending institution focused on assisting underserved rural communities in North Carolina.  Homeowners can borrow up to $4,000 for improvements, with interest rates as low as 3.5%.

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Posted in Energy Efficiency, North Carolina, Utility Business Models / Tagged | Read 2 Responses

Americans For Tax Reform: Another Group That Offers Spin Over Science

This commentary originally appeared on Forbes.

Here we go again.  In recent weeks, we have seen both Senator David Vitter and American Petroleum Institute President and CEO Jack Gerard attempt to mischaracterize the results of the groundbreaking University of Texas at Austin (UT) methane emissions study, preferring self-serving sound bites over an honest read of the data.  And now we are seeing another misinformation campaign coming from Americans for Tax Reform.

In his October 2nd Forbes op-ed, Christopher Prandoni, Federal Affairs Manager for Americans for Tax Reform, uses the UT study to disparage new efforts by the State Department to address methane leakage from the natural gas system.  Prandoni wrongfully claims that the UT study “calculated that average emissions were almost 50 times lower than Environmental Protection Agency (EPA) estimates,” and that nothing further needs to be done about methane emissions.

Prandoni’s read of the UT study results couldn’t be further from the truth.  Total emissions from the production sector were found to be in line with the current EPA estimates, not 50 times lower.  Yes, the UT study did report some good news.  Methane emissions from the stage of extraction known as well completions were lower than EPA estimates.  Unfortunately for Prandoni’s argument, these lower-than-expected results were because of new green completion technologies (an emissions control method that routes excess gas to sales), soon to be required by the EPA for all new hydraulically-fractured natural gas wells. Read More »

Posted in Natural Gas / Read 2 Responses

More Companies Turning to Distributed Generation – What Does it Mean for Utilities?

Last month, the Wall Street Journal reported on an initiative at an increasing number of companies nationwide: on-site, or distributed, power generation. There are many reasons for this growing trend in corporate sustainability, along with many ramifications for the prevailing utility model in the United States – all of which highlight the importance of employing market-based solutions to create a cleaner, smarter, more resilient electric system.

Why Do Companies Unplug?

For companies such as Walmart, increasing the use of distributed, renewable generation is a vital part of larger sustainability goals, including increased use of clean energy and a call for safer ingredients used in the products the company sells. To be sure, however, even the most altruistic companies would be hard pressed to shift off the power grid without sound economic reasons.

A confluence of market factors, including tax incentives that spur attractive returns on investment, advances in solar and wind technologies and policies that encourage greater use of and investments in clean energy (like net metering and time-of-use pricing), has created an economic environment that makes distributed generation not just a viable option, but often a very attractive one. Further, off-grid power can be an effective way for companies to hedge against outages due to storms or unforeseeable catastrophes, a key idea included in the Hurricane Sandy Rebuilding Strategy.

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Posted in Grid Modernization, On-bill repayment, Renewable Energy, Utility Business Models / Tagged | Read 1 Response